Browsing by Author "Pascua, Anne Imelda Caringal"

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    Determinants of bank interest margins and financial liberalization: the Philippine case
    (2002-10) Alamil, Stella Marie Lakindanum; Pascua, Anne Imelda Caringal
    This paper lends a useful framework in explaining the bank interest margins in the Philippine Banking System in the context of the financial liberalization enacted in 1994. Using quarterly financial statements of commercial banks in the years 1995-2001, the paper identifies that the level of non-performing loans, foreign concentration, overhead costs, taxation and inflation are significant determinants of bank spreads. The study also provides empirical evidence that liberalization had a considerable impact in lowering the bank margins, but only to a certain extent. Real competition failed to materialize because of the observed complementary relationship of the local and foreign banks.